April 7th, 2010
08:40 PM ET

Stocks tumble on consumer borrowing report

A look at highlights from the day's business news:

Stocks finish with losses

Stocks tumbled Wednesday following a report that consumer borrowing fell and General Motors said it lost billions of dollars during the second half of 2009.

The Dow Jones industrial average lost 72 points, or about 0.7 percent, to end at 10,897.74. The S&P 500 index fell 7 points, or 0.6 percent. The Nasdaq composite also fell 6 points, or 0.2 percent.

The blue-chip Dow has bumped against the important mark lately. On Monday, the index rose to within 11 points of 11,000. The Dow last closed above that level on September 26, 2008.

Dollar gains on renewed Greece jitters

The dollar rose Wednesday as investors shied away from risk amid concerns about the European Union's plan to aid Greece.

What prices are doing: The dollar was up 0.4 percent versus the euro to $1.3351 and gained 0.1% against the U.K. pound $1.5249. Against the Japanese yen, the dollar fell 0.5 percent to ¥93.32.

What's moving the market: The dollar strengthened as investors turned cautious amid renewed worries about European debt problems and signs the Federal Reserve is concerned about economic growth.

Long-term Treasurys flat ahead of auction

Long-tern Treasury prices were little changed Wednesday, as the government prepared to sell $21 billion in reopened 10-year notes.

What prices are doing: In midday trading, the benchmark 10-year note was flat at 97-4/32 with a yield of 3.96 percent. Earlier this week, prices on the 10-year note fell and investors saw a 4 percent yield - the first time the note had reached that level since October 2008, the height of the financial crisis.

Bond prices and yields move in opposite directions, so when prices drop, yields rise.

On Wednesday, the 30-year bond was flat at 96-8/32 with a yield of 4.83 percent. The 2-year note rose 7/32 to 99-8/32 and yielded 1.11 percent. The 5-year note rose slightly to 99-2-32 and yielded 2.68 percent.

Oil prices retreat from 18-month high

Oil prices slipped Wednesday as a jump in crude oil supplies dimmed hopes that the economic recovery will spur energy demand.

What prices are doing: Crude oil for May delivery fell 96 cents to settle at $85.88 a barrel. This marked the first decline in the past seven trading sessions.

CNNMoney.com reporters Julianne Pepitone, Ben Rooney, Annalyn Censky and Chavon Sutton contributed to this report.

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Filed under: Economy
soundoff (3 Responses)
  1. Dana L. Stern

    Our economy is better now than under the Bush administration. However, it will take a long time for things to turn around. I fiind it incredulous that some Americans think that Obama will last only four years. I believe that he will be a two term President. Republicans or conservatives will try running a Palin Bachmann ticket and fail in 2012, much to my satisfaction they will fail.

    April 7, 2010 at 10:11 pm | Report abuse |
  2. Is That So?

    Our economy is not better now than under the Bush administration. It is better than what is was before 9/11, a milestone that changed our country forever.
    I find it incredulous that some Americans, mostly Democrats to be fair, think that Obama will be a two terms President. One also wonders what is the logical connection between this comment and the first sentence. 🙂
    By the end of Obama's first term, I predict that a scarecrow and a blind mouse will be able beat him and his running mate at the polls in 2012.
    And much to my satisfaction, and many others, Obama will fail and go home, where he belongs, even now.

    April 7, 2010 at 10:46 pm | Report abuse |
  3. Daniel Schatz

    I think that people need to remember that a recession does not occur over night. It is the result of the continuation of bad practices for a long period of time, and likewise, we are not going to be able to climb out of the recession over night. I agree that things do look a bit more hopeful, and its just going to be a slow, long recovery. Regardless of who is in charge of the country, the effects of this recession are more deep, and seem to be effecting a much larger portion of the country when compared to previous economic downturns. I feel that people should remember, that it just going to take time to climb back out of the hole we are in, and it is going to be a slow recovery. I lost my job at the beginning of the recession in 2008, and have not been able to find an equivalent full time position, and have only been able to find temporary, or part time jobs. I have accepted the fact, that this is the situation that Im currently in, however with the extra time that I now have, I will have my BA in IT within the next year. Everyone just needs to stop the crap about right wing/left wing, regardless we are all in this together, and must remain positive in times like this. Things will get better as time heals all wounds.

    April 8, 2010 at 2:32 am | Report abuse |